OPEC’s crude production rose last month as Persian Gulf members phased out extra supply cutbacks, but the cartel largely persevered with its strategy to revive the global oil industry. Saudi Arabia, the United Arab Emirates and Kuwait restored the additional output taken offline in June, when they had amplified efforts to disperse an oil glut left behind during the coronavirus crisis.
OPEC and its partners are continuing to restrain output in accordance with their pact to limit production to tackle the steepest collapse in demand ever seen. Their labor has helped almost triple crude prices from the two-decade low in late April, lifting Brent futures in London to about $43 a barrel. As oil consumption recovers with the restart of economic activity worldwide, the coalition of producers is poised to open the taps even further this month. The group will return 1.3 million to 1.5 million barrels a day to the market this month, according to Saudi Arabia.
Iraq and Nigeria made no progress in implementing their promised supply cutbacks, let alone the additional curbs they had pledged in compensation for earlier non-compliance.
Russia, the biggest non-OPEC member in the OPEC+ alliance, also increased production in July, according to preliminary data from the Energy Ministry.